China inks $40b deals with Pakistan

by Amer Sial and Arif Taj , (Last Updated December 19, 2010)

ISLAMABAD – Pakistan and China on Saturday concluded agreements of nearly $40 billion, with both sides signing a total of 35 memoranda of understanding (MOUs), agreements and joint ventures to transform bilateral and friendly time-tested cooperation into strategic level partnership.Cooperation in the energy sector remained the top priority as both countries signed the agreements, prominent of which was a $6.5 billion-agreement on alternate energy and $3.5 billion agreement for power transmission improvement.Earlier, 13 MoUs were signed in the agriculture, energy, security, science and technology and banking sectors between the two countries on Friday. Chinese Prime Minister Wen Jiabao and Prime Minister Yousaf Raza Gilani also witnessed the signing of agreements and MoUs at the conclusion of the Business Summit Forum.An agreement of $6.5 billion was signed between the Alternate Energy Development Board and China International Water and Electric Corporation to develop wind and solar power.The China Development Bank and National Transmission and Dispatch Company (NTDC) signed another $3.5 billion agreement for enhancement of transmission lines capacity. The deal will result in improving the power transmission network across the country.A joint venture was signed between the Sindh government and China Harbour for the formation of a joint company for the dredging of the seaport. After the agreement, the Sindh government would have no need to issue tenders for dredging of the channels, as the joint venture company would perform the task itself.Over 250 Chinese and 150 Pakistani businessmen attended the business summit. Addressing a press conference after the signing of these agreements, Information Minister Qamar Zaman Kaira told journalists that the worth of the agreements was between $20 billion and $30 billion.The agreements signed between the two countries on Friday included the grant of RMB 200 million for flood reconstruction projects, launching of Urdu Programme by the China Radio and Pakistan Broadcasting Corporation, Concessional Loan Agreement on the Safe City Islamabad Project, National Electronics Complex of Pakistan, agreement to provide license to establish Industrial and Commercial Bank of China (ICBC) by the State Bank of Pakistan, agreement on Economic and Technical Cooperation between the governments of Pakistan and China, agreement on the grant of RMB 200 million for agriculture, framework agreement on provisioning of concessional loan by China to Pakistan and non-intrusive vehicle x-ray inspection system project.